TRANSMITTAL LETTER FOR BOARD MEETING OF NOVEMBER 2, 2017
COMMITTEE ON PROCUREMENT
Mr. David St. Pierre, Executive Director
Title
Authorization to exercise an option to extend and amend agreement with CPower, for Contract 14-RFP-35 Energy Curtailment Services, for 2018-19
Body
Dear Sir:
At the Board Meeting of April 9, 2015, the Board of Commissioners authorized the District to enter into an agreement with CPower (formerly EnergyConnect, Inc., a Johnson Controls Company) to provide energy curtailment services for the District for a three year period. Over the last 3 years, CPower registered the District to participate in an Emergency Capacity Demand Response program, and remitted payment for this directly to the District. The existing agreement gives the District the option to extend the agreement annually with proportional mutual benefits.
The contract was structured so that CPower would receive 9.9% of the curtailment value and the District would receive 90.1%. This was the highest return realized from the BAFOs. Over the last 3 years, the District has received nearly $5 million. We estimate receiving $2.35 million for the period June 1, 2018 through May 31, 2019.
The extension of the termination date is in compliance with the Illinois Criminal Code because it is germane to the original agreement as signed and is in the best interest of the District.
In view of the foregoing, it is requested that for the period from June 1, 2018, through May 31, 2019, the Board of Commissioners authorize the Director of Procurement and Materials Management to accept the offer from CPower.
Requested, John P. Murray, Director of Maintenance and Operations
Recommended, Darlene A. LoCascio, Director of Procurement and Materials Management
Respectfully Submitted, Barbara J. McGowan, Chairman Committee on Procurement
Disposition of this agenda item will be documented in the official Regular Board Meeting Minutes of the Board of Commissioners for November 2, 2017